Loans

21st
century consumers in India have seen Banks and Non-Banking Finance Companies
(NBFCs) in India offer a wide range of loans.
Never before has access to loans been as easy. Several recent
developments in banking infrastructure (coming of age of the credit bureaus and
increasing ease of cheque settlements across locations) are aiding the ease of
availability of loans. If we classify loans based on the purpose for which
money is being raised, there are at least the following:

Housing Loans (also known as Home Loans) to fund the
purchase and/or construction and/or repairs and renovation of a house along
with the land surrounding it or even the purchase of a flat in a residential
apartment.

Commercial
Property Loans to fund the purchase of immovable property for commercial
purposes.

Car Loans (also known as Auto Loans) to fund the purchase of a new or a used car.

Multipurpose Loans where the loan amount can
be used for any purpose. Most typically, loan amounts greater than Rs 10 lakhs
are either used for funding a business (popularly called Business Loans) or
for funding higher studies of children. Multipurpose loans for amounts less
than Rs 5 lakhs are often used for funding wedding expenses (own or sibling) or
for funding an overseas holiday. More importantly multipurpose loans may be
further classified based on the collateral offered.

Personal Loans : These are completely unsecured loans
(meaning no collateral has to be provided by the borrower). These attract high
rates of interest which banks are known to negotiate for customers matching
their target profiles.

Loan Against Property : The collateral pledged here is an immovable
property (either residential or even commercial). These are cheaper than
unsecured loans since the bank perceives a lower risk, but they are costlier
than Home Loans as the purpose of using money is an unknown

Loan Against
Security : The collateral pledged here is a financial asset such as stocks/
bonds/ fixed deposit

Loan
Against Gold (also known as Gold Loans) : The collateral pledged here is gold jewellery.

ApnaPaisa advises consumers to borrow responsibly. It is important that
we remember that a loan taken is the same as giving the bank a share of our
future income.

Borrowers who
experience a difficulty getting a loan because of age, income or credit score
can still avail of Gold Loans and Loan Against Security.

On the other hand, in
case of a personal loan, the bank is placing its entire bet on the future
income of the borrower so these loans are obviously not available to
applicants whose age or income profiles don't conclusively prove the potential
to repay.

How does ApnaPaisa help loan-seekers?

Simply put, the
ApnaPaisa platform helps consumers looking for loans in the following five
ways:

1.Generating
Choice

The first thing about
rates and charges is that they can always be negotiated. And a skillful
negotiator can also negotiate the terms once he senses that the bank is
desperate for his business. But the key to getting a great deal is to be in the
driver's seat. For that, you need to have a choice of banks who are queuing up
to offer you a loan.

With ApnaPaisa's ever
expanding network of over 1,200 banks and distributors spread across the
country, we believe that whatever be your profile you will certainly not get
more choice if you apply on any single other platform. In fact, it is our
mission that if your loan can be done on the terms desired by you in India it
should be possible to be done through the ApnaPaisa network.

If you directly want
to apply and do not have the time to do a comprehensive research at this point
of time, you might find these pages useful:

Apply for a Home Loan

Apply for a Personal Loan

Apply for a Loan Against Property

2.Calculators
to aid decision making

Much before we choose
to apply, we want to know some basics. For instance, what is the maximum loan
amount am I eligible for? Or what EMI will I have to pay and for how long? Or
if I have an existing loan, should I pre-pay it or even transfer the balance? We
believe that our easy to use calculators help answer these and other equally
relevant pre-purchase questions.

3.Rate
Charts to make initial comparisons

Another pre-purchase
question that we seek to answer is what are the typical rates in the industry
today? Or which bank will offer you what rate and levy what charges? While it
is extremely important to note that all rates and charges that are published by
banks (even on their own websites) can be negotiated to a certain extent. But
most of us want to get a broad idea of current rates and charges even before
applying. Which is why, weve built a host of comparison tables for any given
profile that you may use as ready reckoners.

4.Product
Guides

Our Product Guides
explain the typical loan application process, the eligibility criteria, the
documents required, the typical associated costs (in addition to the interest
charged), tax implications (if any) and negotiating tips so that you can get a
better deal than most others.

5.Expert
Advice

In case you still have
a question that has been left unanswered, you have the option to post it for
free on the ApnaPaisa Facebook page. While we cannot promise that we will be able
to answer all questions posted here, we will certainly make our best effort.

At this time we are
considering the possibility of expanding our expert team so that we can offer
advisory services for a fee where we will be able to guarantee a response
within two business days.

Should you be
interested in such services, please send your request to research@apnapaisa.com